Q Earnings Disclosure

Transcription

1 Q Earnings Disclosure 26 April 2018

2 Forward Looking Statements This presentation may contain statements that constitute forward-looking statements about the Company, within the general meaning of the term and within the meaning of applicable securities laws, including financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations. These statements may appear in a number of places in this document and may include statements regarding our intent, belief or current expectations regarding our customer base, estimates regarding future growth in our different business lines, market share, financial results and other aspects of our activity and situation relating to the Company. The forward looking statements in this document can be identified, in some instances, by the use of words such as expects, anticipates, intends, believes, and similar language or the negative thereof or by the forward-looking nature of discussions of strategy, plans or intentions. Such forward-looking statements, by their nature, are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in the forward-looking statements as a result of various factors. Neither this presentation nor any of the information contained herein constitutes an offer of purchase, sale or exchange, nor a request for an offer of purchase, sale or exchange of securities, or any advice or recommendation with respect to such securities. Finally, be advised that this document may contain summarized information or information that has not been audited. In this sense, this information is subject to, and must be read in conjunction with, all other publicly available information. Slide 2 of 18

3 Q1 (Jan Mar 2018) Performance Highlights 8% NET PROFIT AFTER TAX BDT 551 mn, 8% YoY de-growth 7% CUSTOMER ADVANCES BDT 76.5 bn, 7% YoY growth 3 bps NON PERFORMING LOANS 2.80% Slide 3 of 18

4 Strong loan growth amid liquidity pressure in the market Balance Sheet Customer Loans 87,993 89,735 96,211 95,687 97,025 67,651 70,192 70,605 71,499 76,452 2% 7% 1% 1% 4% 1% 1% 7% Highest quarterly growth in customers loans for the last four quarters, achieved through reallocating assets from low-yielding placements Slide 4 of 18

5 Deposits remained flat Money market tightened during the quarter prompting a 227 bps increase in marginal cost of deposits in Q1 Competition for deposits expected to remain intense throughout the year Customer Deposits 59,460 59,854 59,854 51,319 52,150 2% 14% 1% 0% Slide 5 of 18

6 SME continued impressive growth Customer Advance - SME 28,836 30,911 31,324 30,851 32,646 Majority of the growth delivered by Small Enterprise Finance (SEF), which now stands at BDT 24,642mn - having grown 7% during the first quarter 7% 1% 2% 6% Slide 6 of 18

7 Consumer loan growth remains consistent Customer Advance - Consumer 22,240 23,206 23,839 24,152 24,861 Consistent growth maintained during the quarter - Home Loans grew by 4% to BDT 22,614mn 4% 3% 1% 3% Home loan growth pan industry might suffer this year due to significant increase in interest rates and construction costs Slide 7 of 18

8 Corporate portfolio grew despite rate hike Customer Advance - Corporate 14,730 14,262 13,297 14,432 17,151 Corporate portfolio experienced significant growth in Q1 with most customers opting to draw the committed facilities 3% 7% 9% 19% The portfolio grew by 16% Y-o-Y Slide 8 of 18

9 NPL remained controlled Portfolio Composition Q1, 2018 NPL% Corporate 17,151 23% Consumer 24,861 33% SME 32,646 44% 2.79% 2.84% 2.83% 2.77% 2.80% SME Corporate Consumer Slide 9 of 18

10 Slight increase in Operating Income from the preceding quarter Net Interest Income 2% YoY increase in NII against 13% increase in Customer Assets as margins tighten 950 1,065 1, Fees and other income took a dip in the previous two quarters mainly due to decreased turnover in the Stock Market Operating Income 1,639 1,707 1,516 1,418 1,458 Slide 10 of 18

11 Expenses contained at desired level Operating Expense Operating expense fell 7% from the last quarter to stay at the lowest level within the last 5 quarters 35% Cost / Income Ratio 43% 39% 34% 39% Cost to income ratio for the quarter indicates slight improvement due to lower operating expense coupled with 3% QoQ growth in Operating Income Slide 11 of 18

12 YoY Performance Metrics: Q1 (Jan-Mar) Customer Assets Customer Deposits Net Interest Income Fee & Other Income 67,651 76,452 51,319 59, % 17% 2% 37% Q Q Q Q Q Q Q Q Investment Income Operating Income 1,639 1,458 Operating Profit 1, Net Profit % 11% 17% 8% Q Q Q Q Q Q Q Q Slide 12 of 18

13 Profit contribution from different entities Q Q Growth IDLC Finance Limited % IDLC Securities Limited % IDLC Investments Limited % IDLC Asset Management Limited % Consolidated NPAT % Slide 13 of 18

14 Strong shareholder returns despite competitive pressures Earnings per Share Return on Asset (annualized) % 2.69% 2.92% 2.14% 2.29% Book Value per Share Return on Equity (annualized) * 24.23% 22.23% 24.29% 17.40% 17.90% 29 * Ex-dividend Slide 14 of 18

15 Operating well within regulatory limits Capital Adequacy Ratio (CAR) Loan to Fund 14.5%* 95.0% 88.8% 10.0% Regulatory Minimum Actual as of 31 Mar 2018 Regulatory Maximum Actual as of 31 Mar 2018 * CAR of IDLC Finance on standalone basis, before consolidation. On a consolidated basis, CAR stands at 16.1% as on 31 March 2018 Slide 15 of 18

16 Non Financial Highlights: Q CUSTOMER ACQUISITION 2,840 new customers added during the quarter to take total number of customers in the group to 49,351* IDLC GROWTH FUND Launched IPO of IDLC Growth Fund 2 nd open end mutual fund managed by IDLC Asset Management Limited AWARDS IDLC awarded Best Corporate 2016 by ICMAB TECHNOLOGY Launched interactive intranet interface for seamless communication Several process improvement efforts have been initiated, aimed at increasing efficiency CSR Handed 1,200 blankets to Prothom Alo Trust Engaged volunteers through the Khushir Kheya platform for the plantation of 1,000 saplings PEOPLE & CULTURE Training to employees: 5,754 hours Improved performance management system in full roll-out * Number of customers in IDLC Finance only: 25,733 Slide 16 of 18

17 Looking forward Intense competition for deposits expected to continue throughout the year Major margin reduction not expected Home Loan growth in prime markets may remain sluggish with increase in interest rates. However, we expect to further solidify our footing in 2 nd tier cities Liquidity pressure may adversely impact industry-wide NPL scenario necessitating more careful monitoring Slide 17 of 18

18 Q & A Slide 18 of 18